For Real Property Owners
The continued growth of the real estate market has impacted home prices both locally and nationwide. State law requires localities, including Henrico County, to assess real estate for taxation at 100% of fair market value, therefore real estate assessed values will increase proportionately. The state collects and publishes data annually to track how closely the County and other localities reflect market values in their real estate assessments.
Henrico County is taking steps to reduce the impact of rising real estate taxable values on taxpayers by providing a credit equal to two cents per $100 of taxable value for the second consecutive year. Like last year, taxpayers will receive a check equivalent to 2 cents per $100 on their 2023 assessed values, if the credit is $30 or more. Credits less than $30 will be applied to real estate tax accounts.
Checks will be distributed in September 2023. Credits will be applied to accounts prior to the second installment bills which will be distributed in October.
The 2023 tax relief credit will provide a projected $11.2 million back to Henrico property owners. These funds were not factored into the 2023-2024 budget; they are surplus real estate tax dollars collected in the prior fiscal year. State code specifically allows for surplus funds to be refunded to taxpayers. Returning these funds will not impact funding for education, public safety, recreation, or any other county agencies, programs, or services.
The Henrico County Board of Supervisors will consider this credit payment to real property owners at a regularly scheduled meeting in June 2023. Checks will be issued to for owners of record for the property as of August 1, 2023.
The credit is calculated by dividing the total taxable value of the property by $100, then multiplying the result by .02. For example, a $260,000 taxable value / $100 x .02 would result in a $52.00 credit. The 2023 average assessed value of a single family residence is $367,000 which would receive a credit of $73.40.
Property owners who owe delinquent taxes to the county will have the credit applied to their outstanding balance.
If you have additional questions, please call (804) 501-4729, option 1.